The CFPB has formally withdrawn a 2023 joint statement with the Department of Justice that warned lenders about considering immigration or citizenship status when evaluating credit applications, marking a significant shift in the agency’s fair-lending posture.
In a filing published in the Federal Register, the CFPB said the prior guidance may have created the mistaken impression that the Equal Credit Opportunity Act and Regulation B restrict lenders from considering immigration or citizenship status in underwriting decisions. The Bureau emphasized that no such prohibition exists under current law and that Regulation B explicitly allows creditors to consider immigration status, so long as it is not used to discriminate on a protected basis.
The 2023 joint statement, issued under the Biden administration, cautioned that certain policies related to noncitizen borrowers could trigger discrimination risks based on race or national origin. The CFPB now says that guidance focused too narrowly on potential compliance risks and may have discouraged legitimate underwriting practices, including those tied to repayment rights, work authorization, or compliance with anti-money-laundering and Know Your Customer requirements.
The withdrawal aligned with the CFPB’s revised guidance policy announced in 2025, under which the Bureau said it will avoid issuing nonbinding guidance that is unnecessary or increases compliance burdens. The agency concluded that additional guidance beyond Regulation B was not warranted.
The CFPB stressed that the move does not weaken consumer protections or alter ECOA’s anti-discrimination standards. Consumer rights under federal law remain unchanged, and lenders do not receive new legal immunity.
Instead, the Bureau framed the action as a clarification, reaffirming that creditors may lawfully consider immigration status while remaining fully subject to ECOA’s prohibition on discriminatory lending practices.
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